BILL ANALYSIS �
AB 363
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Date of Hearing: May 11, 2011
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Isadore Hall, Chair
AB 363 (Hayashi) - As Amended: April 14, 2011
SUBJECT : California State Lottery.
SUMMARY : Extends the due date from December 31 to April 1 for
each of the next five years, on specified reporting requirements
regarding the California State Lottery Commission's efforts to
boost income for public education, as defined. Specifically,
this bill :
1) Changes the reporting date for the California State
Controller (Controller) to make specific reports to the
Legislature from December 31 to April 1, for each of the next
five years, regarding the State Lottery's efforts to boost
income for public education.
2) Extends the operation of the change described above until
April 1 of the year following notification of the Legislature
and the Governor by the Controller that specified events
relating to the total net revenues allocated to the benefit of
public education have occurred, and the prior law will be
restored at that time.
EXISTING LAW
1) The California State Lottery Act (Lottery Act or Act) of
1984, enacted by initiative, authorizes a California State
Lottery and provides for its operation and administration by the
California State Lottery Commission (Commission) and the
Director of the California State Lottery, with certain
limitations.
2) Requires the Commission to establish the percentage of total
annual revenues of the state lottery to be allocated to the
benefit of public education at a level that maximizes the total
net revenues allocated for the benefit of public education.
3) Requires the Controller, by September 1 of each fiscal year
for 5 years following the enactment of this provision, to report
to the Legislature whether specified events relating to the
total net revenues allocated to the benefit of public education
AB 363
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have occurred and, if so, to notify the Legislature and the
Governor
4) Requires the Controller to convene a lottery review group to
report to the Legislature, no later than December 31 following
the final fiscal year of that 5-year period, on whether certain
provisions have furthered the purposes of the Act of 1984.
5) Under existing law, those provisions shall remain in effect
only until December 31 of the year
of notification from the Controller to the Legislature and the
Governor that those specified events relating to the total net
revenues allocated to the benefit of public education have
occurred, and the prior law will be restored at that time.
FISCAL EFFECT : This bill has been keyed non-fiscal by
Legislative Counsel.
COMMENTS :
Purpose of the bill : AB 363 would extend the amount of time (by
4 months and 2 months, respectively) the Controller has to
complete reports as required by AB 142 (Hayashi), Chapter 13,
Statutes of 2010, which enhanced the funding benefit for
education through the California State Lottery Act.
The California State Lottery Act was passed by the voters in
November 1984. The passage of the Lottery Act created the
California State Lottery Commission to oversee the lottery,
ensuring the integrity, security and fairness of the lottery
system and its games in California.
AB 142 (Hayashi) of 2010 required revenues of the state lottery
to be allocated to maximize the amount of funding allocated to
the public education system in California. The bill also
required the Controller to report to the Legislature whether
specified events relating to the total net revenues allocated to
the benefit of public education have occurred and whether
certain provisions have furthered the purpose of the California
State Lottery Act of 1984 by September 1 and December 31,
respectively, following the final fiscal year of that 5-year
period.
However, completing the review by the dates required has been
problematic for the Controller's Office, as the Division of
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Audits only receives the information necessary to conduct the
reports during the last week of August and the last week of
October, respectively. This bill would give the Division of
Audits the necessary time to perform a quarterly review and to
determine if the Lottery complied with AB 142 by extending the
reporting deadlines.
Prior legislation : AB 142 (Hayashi), Chapter 13, Statutes of
2010. Modified the allocation formula of the Act of 1984, also
known as Proposition 37. Repeals the modifications to the
allocation formula if it is determined by the Controller that
the amount of revenues allocated to the benefit of public
education by the Lottery is less than what would have been
allocated if the law were not changed, as specified.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
None on file
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531